Fitch maintains Mazeikiu Nafta default rating of 'B+' and keeps it on Rating Watch Positive, the rating agency reported on Friday. Short-term rating of Mazeikiu Nafta was affirmed at 'B'.
Fitch is positive on the pending ownership changes due to PKN's stronger business and financial profile. Fitch views that the approximately USD1bn-USD1.3bn investment programme for the coming three to four years should transform MN into a modern refinery.
Our view: Fitch seemingly does not worry about crude supply security, which could be a positive message for investors. Restarted crude oil purchases via the sea could push up transportation costs, however, under current margin environment even this route of supply could be profitable. We see the Fitch report as slightly supportive for PKN share price.